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David Baylot is senior vice president at Birmingham-based The Sanders Trust.

He has more than 25 years of experience in the real estate world and has worked in the medical real estate sector since 1995.

His company owns more than 30 properties in 14 states.

Its local properties include the Shelby Medical Office Building, Woodscape Office Building and World Business Center.

BBJ:What is the medical construction market like now?

Baylot: Just like any of the construction markets, people are being cautious about starting new projects.

Financing is difficult unless the proposed building is preleased and generally has some leasing support from the hospital. It’s something everybody is experiencing.

BBJ:What impact is the credit crunch having on financing for new projects?

Baylot: It depends on how much is preleased and how much is supported by the hospital. They will be looking at the credit at the hospital as much as anything.

BBJ:When do you see the market improving?

Baylot: We’re seeing some hospitals and hospital systems talking about new development projects but we’re seeing more interest in selling existing medical office buildings.

Both for-profit and nonprofits are looking at those hard assets and looking for ways to monetize them to raise money. They realize they have those assets and that’s not their core business. They are there to provide health care and not to be a landlord.

BBJ:Is there an overabundance of available medical office buildings and health care facilities on the market?

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